Older borrowers tend to qualify for larger principal limits than younger borrowers. To see how this works, let’s take a look at an example. Let’s assume we’re comparing two borrowers, a 65-year old and an 85-year old, and both have free and clear homes worth $250,000.

Using our basic PL calculator, we get the following principal limits (using the PL tables in effect as of June 2019):

65-year old: $107,500

85-year old: $147,750

As you can see, the 85-year old qualifies for about $40,000 more than the 65-year old in this scenario.